Based on instructions from President Vladimir Putin, Russia’s central bank prepared a bill for the regulation of сryptocurrencies and ICO’s which was then submitted to the Duma for approval on December 28th, 2017.
The bill is expected to be adopted in March of this year and then finalized by July 1st, 2018.
The bill further characterizes cryptocurrencies including ICO’s not as legal tender but as what it deems “other property.”
Those who are not “qualified investors” will be able to purchase tokens of a certain type for an amount not exceeding fifty thousand Rubles ( roughly $800 US dollars). The ministry also suggests limiting the max amount of money raised by an ICO to one billion Rubles (or approximately seventeen million US dollars).
The bill further allows for ICO’s – but establishes strict restrictions on them.
The President of the Russian Association of Cryptocurrency and Blockchain, Yuri Pripachkin, argued: “ICO fundraising shouldn’t be limited, as they can attract an infinite amount of foreign investments to Russian projects.”
As of this writing, mining and trading of digital currencies is not regulated under Russian laws. The bill defines crypto-currency mining & trading as a taxable action. Entrepreneurs and legal entities could thus engage in crypto mining & trading activities subject to tax by analogous with the taxation of business activities.
Crypto trading would not be subject to a value-added tax (VAT).